This is the biggest change

The biggest change in this is regarding the duration of the assessment year. Till now, taxpayers were allowed to file ITR-U only within 24 months of the end of the assessment year. But now this period has been increased to 48 months. In this way, now taxpayers will get two years of additional time.

Why and who has to fill ITR-U?

The name of ITR-U itself suggests that it is an updated return. That is, if you have made a mistake while filing the return. Apart from this, if you have forgotten to include any important details in the return, then you can correct your mistake within 4 years from the year in which this mistake was made. Broadly, this return is for those people who could not file ITR on time, or have made mistakes in filing the return.

In what cases can it be filled?

ITR-U can be filled by any person. If you have not filed the return. Also, if you have filed the return but have not been able to report the income correctly. Income has been shown under the wrong head, return has been filed in the wrong tax slab. ITR-U can be used in all such cases.

when is the last date?

ITR-U can be filed within four years of any assessment year. For example, you have to file ITR for the financial year 2024-25, whose assessment year is 2025-26 and it will end on March 31, 2026. If you do not file ITR during this period, or file ITR with incorrect information, then the last date for ITR-U will be March 31, 2030.

The post Now you will get 4 years time to file ITR-U, CBDT has released the revised form; Know when is the last date? first appeared on Rightsofemployees.com.

Let us know how a common taxpayer will benefit from this initiative of the government. If you also have to file your updated return, then how will you be able to do it. We are trying to answer all your questions.

What is Updated ITR (ITR-U)?

Updated ITR (ITR-U) is a form that allows taxpayers to update their income tax returns. They can file their returns using this form if they have missed filing the original or belated returns or need to correct errors in previously filed returns. However, taxpayers cannot use ITR-U to claim refunds, reduce tax liability or set off losses.

Who can file ITR-U?

Any taxpayer who has made any mistake or omitted income details in any of the following returns can file an updated return.

When to file ITR-U?

Taxpayers will have to pay additional tax while filing ITR-U. The rate depends on how late the updated return is filed.

• File ITR-U within the additional tax due
• 25% of tax + interest within 12 months from the end of the relevant Assessment Year (AY)
• 24 months from the end of the respective AY 50% of tax + interest
• 60% of tax + interest 36 months from the end of the respective AY
• 48 months from the end of the respective AY 70% of tax + interest

Who cannot file ITR-U?

• Updated return has already been filed.
• Filing of nil return or loss return.
• Want to increase the refund amount.
• Updated returns result in lower tax liability.
• Search or survey has been initiated under section 132, 133A, or 132A.
• Tax assessment/reassessment is pending or completed.
• No additional tax is due (adjusted with TDS/loss).

How to file updated returns? 

• Download the ITR-U form from the Income Tax Department website.
• Login to the e-filing portal and select “Update Return (ITR-U)”.
• Enter the required details including additional income and tax payable.
• Calculate and pay additional tax before submission.
• Submit the form and verify the return using Aadhaar OTP, Net Banking or DSC.

The post How to file updated income tax return after the budget, know the complete process here first appeared on Rightsofemployees.com.